With reference to the International Monetary and Financial Committee (IMFC), consider the following statements: 1. IMFC discusses matters of concern affecting the global economy and advises the International Monetary Fund (IMF) on the direction of its work. 2. The World Bank participates as an observer in IMFC’s meetings. Which of the statements given above is/are correct?

QUESTION

Medium

International Relations

Prelims 2016

With reference to the International Monetary and Financial Committee (IMFC), consider the following statements:

IMFC discusses matters of concern affecting the global economy and advises the International Monetary Fund (IMF) on the direction of its work.
The World Bank participates as an observer in IMFC’s meetings.

Which of the statements given above is/are correct?

Select an option to attempt

Explanation

Statement 1 is Correct: The International Monetary and Financial Committee (IMFC) serves as a vital forum for discussing global economic issues and providing guidance to the International Monetary Fund (IMF). It brings together finance ministers, central bank governors, and other high-level officials from member countries to discuss challenges and opportunities facing the global economy. They also advise the IMF on its policy direction and work program.

Statement 2 is Correct: The World Bank, while a separate institution, collaborates closely with the IMF. While not a formal member of the IMFC, the World Bank typically participates as an observer in IMFC meetings. This allows for better coordination and exchange of information between the two institutions on matters of mutual interest, such as global economic stability and development.

Hence, option C is the correct answer.

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